Verimatrix SA (VMX) AI Stock Analysis

Verimatrix SA

(Paris:VMX)

Select Model

Rating:32Underperform

Price Target:EUR 0.27▼(-9.12% Downside)

Action:reiterated

Date:10/24/26

Verimatrix scores poorly, driven primarily by severe financial deterioration: a five-year revenue decline of nearly 50%, a projected €81.8M net loss, sharply eroded equity, rising leverage and negative free cash flow. Technical indicators reinforce the caution, with the price below its 20-, 50- and 100-day moving averages and a negative MACD, though a low RSI suggests the selloff is extended. Valuation provides no support given negative earnings and the absence of a dividend. Solid software gross margins and reduced absolute debt are modest positives, but the company remains a high-risk turnaround situation with limited financial cushion.

Positive Factors

Gross margin resilienceA roughly 63% gross margin indicates the core software and protection offerings retain meaningful economic value even while the company is loss-making. If maintained, this margin provides a base for operating improvement as revenue stabilizes and supports reinvestment in product capabilities.

Negative Factors

Declining revenue and persistent lossesDeclining revenue combined with sustained operating losses shows that the company is not currently converting its software offering into profitable scale. The very large 2025 net loss overwhelms gross profit and may restrict investment capacity, making a durable earnings recovery more difficult.

Verimatrix SA (VMX) vs. iShares MSCI France ETF (EWQ)

Market Cap: EUR 26.44M
Dividend Yield: ―
Average Volume (3M): 149.64K
Price to Earnings (P/E): -0.3
Beta (1Y): 1.04
Revenue Growth: -26.57%
EPS Growth: 79.38%
Country: France
Employees: 215
Sector: General
Sector Strength: 55
Industry: Software - Infrastructure

Verimatrix SA Business Overview & Revenue Model

Company Description

Verimatrix S.A. provides global security solutions aimed at safeguarding digital content, software applications, and various electronic devices. The company's protective technologies serve a diverse range of sectors, including the automotive industry...

Verimatrix SA Financial Statement Overview

Summary

Financials are weak across all three statements. Revenue has nearly halved from €94.9M in 2020 to a projected €48.4M in 2025, with persistent operating losses and a massive projected net loss of €81.8M (-169% net margin). The balance sheet has deteriorated sharply, with equity collapsing from €147.4M to €34.6M and debt-to-equity rising to 0.93 from 0.29, despite absolute debt reduction. Cash flow is negative on both an operating (-€312K) and free cash flow (-€729K) basis, limiting the ability to self-fund operations. Healthy gross margins of 63-80% are the only meaningful offset.

Income Statement

22Negative

Balance Sheet

35Negative

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.26M	46.50M	57.20M	61.63M	61.01M	88.47M
Gross Profit	25.84M	29.50M	38.90M	42.54M	41.84M	64.99M
EBITDA	-580.07K	-69.31M	1.22M	96.00K	-1.24M	14.31M
Net Income	-13.60M	-78.60M	-10.30M	-14.29M	-17.61M	3.68M
Balance Sheet
Total Assets	79.88M	91.41M	171.90M	191.87M	209.91M	239.22M
Cash, Cash Equivalents and Short-Term Investments	5.20M	7.10M	11.00M	22.63M	30.05M	45.27M
Total Debt	25.79M	32.10M	32.27M	32.50M	43.50M	56.80M
Total Liabilities	47.89M	56.91M	60.40M	70.10M	74.04M	87.70M
Stockholders Equity	31.99M	34.60M	111.50M	121.77M	135.87M	151.53M
Cash Flow
Free Cash Flow	3.05M	-728.54K	-3.70M	-3.60M	2.67M	12.04M
Operating Cash Flow	3.20M	-312.23K	-1.60M	-792.00K	2.90M	12.69M
Investing Cash Flow	3.51M	-2.08M	-2.10M	-2.82M	-3.45M	509.00K
Financing Cash Flow	-6.29M	-1.46M	-8.10M	-3.67M	-14.65M	-16.47M

Verimatrix SA Technical Analysis

Technical Analysis SentimentPositive

Last Price0.30

Price Trends

50DMA0.31Negative

100DMA0.27Positive

200DMA0.23Positive

Market Momentum

MACD-0.01Negative

RSI53.72Neutral

STOCH93.21Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VMX, the sentiment is Positive. The current price of 0.30 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.31, and above the 200-day MA of 0.23, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 53.72 is Neutral, neither overbought nor oversold. The STOCH value of 93.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:VMX.

Verimatrix SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

FR:VMX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FR:ALHYP	56Neutral	EUR 26.08M	6.26	9.80%	―	-2.18%	203.11%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
FR:ALLIX	52Neutral	EUR 160.65M	108.09	12.68%	―	16.83%	―
FR:OVH	51Neutral	EUR 2.02B	210.32	18.61%	―	5.58%	―
FR:WLN	47Neutral	EUR 559.11M	-0.07	-28.58%	―	-18.15%	77.92%
FR:VMX	32Underperform	EUR 25.89M	-0.25	-47.32%	―	-26.57%	79.38%

* General Sector Average

Performance Comparison

FR:VMX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FR:VMX	Verimatrix SA	0.30	0.13	78.31%
FR:WLN	Worldline SA	9.85	-13.14	-57.16%
FR:ALHYP	Hipay Group SA	4.13	-5.39	-56.62%
FR:OVH	OVH Groupe SAS	13.25	4.85	57.64%
FR:ALLIX	Wallix Group SA	22.70	-2.05	-8.28%
FR:MLIFC	Infoclip SA	22.14	20.14	1007.00%

Verimatrix SA Corporate Events

Verimatrix Returns to Growth as Anti-Piracy Revenue Jumps 20% in Q3

Oct 26, 2026

Verimatrix reported a strong third quarter 2026 on its refocused Anti-Piracy business, posting 20% revenue growth to $10.4 million, driven by a 73% surge in non-recurring license sales and a 5% increase in recurring revenue. Subscription ARR rose 13%...

Verimatrix Publishes Half‑Year 2026 Report and Sets Date for Q3 Revenue

Oct 19, 2026

Verimatrix SA has published and filed its half‑year financial report for the period ended June 30, 2026 with the French markets regulator AMF, making the document available to investors via its corporate website. The disclosure provides stakeho...

Kaltura and Verimatrix Forge Cloud TV Security Alliance to Bolster OTT Revenue Protection

Sep 3, 2026

Kaltura and Verimatrix have entered a strategic partnership that integrates Verimatrix’s multi‑DRM and anti‑piracy technologies into Kaltura’s Cloud TV platform, enabling telcos, operators, broadcasters and media companies to...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 24, 2026

Verimatrix SA AI Stock Analysis